Nasdaq revisits March 2000, and it’s the saddest party ever

By Shawn Langlois

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It took a long time, but the Nasdaq
/quotes/zigman/12633936/realtimeCOMP just got back to where it was in the dot-com days. That is, it’s back to where it was March 31, 2000, though some 11% off the 5,048.62 peak seen March 10. Still, where’s the DJ and the shrimp platters? (Editor’s note: An earlier version used the word peak in the headline of this blog and also didn’t included the added information in this graph about the levels. Mea culpa).

During those heady times, margaritas and massages flowed in the MarketWatch newsroom, transvestites served burgers at a Razorfish bash and Oracle’s Christmas soiree took over the ritzy Fairmont in a grand display of excess.

Alas, while the index says the party is back, the reality tells a different story.

For one, those investors burned by the epic collapse may still be suffering some form of post-traumatic stress disorder. And nobody could blame them for that.

Not to mention all the other reasons dark clouds hang all over this “party”. Remember, these are the dog days of August and the strength could be fleeting. As BTIG Chief Strategist Dan Greenhaus points out: “Can we really read anything into this? In 2010, 2011, 2012 and 2013, the equity move in August’s final 10 sessions was reversed in the subsequent 10 days. Perhaps that’s all we need to know.”

The quote of the day:“We’re going to be hardcore. Haaaaardcore! Haaaaaaaardcore!We’re going to get better everyday. We’re going to be tenacious. Something knocks us down, and we’re going to get back and keep coming and coming and coming and coming. Did you watch these guys? That was haaaaaardcore! Haaaaardcore baby! Nothing gets in our way, BOOM! Keep coming. Haaardcore. The Haaaardcore Clippers, that’s us.” — Steve Ballmer, sounding just like you’d expect him to sound during his Clippers introduction speech.

The economy: The U.S. consumer price index for July hits today along with housing starts, which are seen rising to a seasonally adjusted 969,000, up from 893,000 in June. Aside from a few notable reports this week, all eyes will be on Janet Yellen and what comes out of that Teton boondoggle over the next few days.

The chart of the day: On Friday, Tim Knight of the Slope of Hope blog used this chart to make his bullish case for Sky-mobi
/quotes/zigman/2380081/delayed/quotes/zigman/2380081/lastsaleMOBI. Little did he know his call was more prescient than he could have possibly hoped for. The stock blew up for a 26% gain Monday. And if you liked it before, you should love it now, because “this stock looks even better than it did Friday,” Knight said in a post revisiting his call.

The call of the day: AllianceBernstein’s Chris Marx offered up his playbook for how to handle the inevitable rising-rate environment. Nothing too earth-shattering here, but considering this climate change could happen sooner rather than later, there’s no harm in taking a harder look at your portfolio. Especially with Janet Yellen on the horizon. “Investors need to take measure of the rate sensitivity in their portfolios – and stay agile – to negotiate the rough market crosscurrents a rate reversal may bring,” he said. To summarize, income-oriented plays like utilities, tobacco, telecom and real-estate investment trusts are obviously vulnerable, while financials, energy and consumer discretionary should prosper. Read his full breakdown.

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